Help! HomeworkSavedExercise 4-10 Contrasting ABC and Conventional Product Costs [LO4-2, LO4-3, LO4-4]Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product linesappear below:XactivePathbreaker50.60Direct materials per unitDirect labor cost per unitDirect labor-hoursEstimated annual production and sales64.40$.17.80$412.60per unit1.4 DLHS1 DLHS21,000 units71,000 unitsThe company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours.Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear belowesEstimated total manufacturing overheadEstimated total direct labor-hours$1,967,840100,400 DLHSRequired:1-a. Compute the predetermined overhead rate based on direct labor-hours.1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product.2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign itsmanufacturing overhead to the following four activity cost poolsEstimatedOverhead CostXactive29,400230Expected ActivityPathbreaker71,000130Activity Cost Pools and Activity MeasuresSupporting direct labor (direct labor-hours)Batch setups (setups)Product sustaining (number of products)General factory (machine-hours)Total manufacturing overhead cost$707,820540,000655,16064,860$1,967,840100,400360112,1007,1009,200Prev5 of 7Next >here to searchLEGO EstimatedOverhead CostExpected ActivityPathbreakerActivity Cost Pools and Activity MeasuresSupporting direct labor (direct labor-hours)Batch setups (setups)Product sustaining (number of products)General factory (machine-hours)Total manufacturing overhead costXactiveTotal$ 707,820540,000655,16064,860$1,967,84029,40023071,000130100,40036011.22,1007,1009,200pokDetermine the activity rate for each of the four activity cost pools.3. Using the activity rates and other data from the problem, determine the unit product cost of each product.skrint.rencesComplete this question by entering your answers in the tabs below.Req 1AReq 1BReq 2Req 3Using the activity rates and other data from the problem, determine the unit product cost of each product. (Round yourintermediate calculations and final answers to 2 decimal places.)XactivePathbreakerUnit product cost< Req 2AcGrawHillK Prev5 of 7Next >

Predetermined Overhead Rate = Estimated Total OverheadEstimated Units of Allocation Base Activity…

Exercise 4-10 Contrasting ABC and Conventional Product Costs [LO4-2, LO4-3, LO4-4] Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: Xactive Pathbreaker Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales 2$ 17.80 64.40 50.60 $ 12.60 1 DLHS 71,000 units 1.4 DLHS 21,000 units The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $1,967,840 100,400 DLHS Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. 1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. 2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools: Estimated Overhead Cost Expected Activity Pathbreaker 71,000 Activity Cost Pools and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost Xactive 29,400 $ 707,820 540,000 655,160 64,860 100,400 230 130 360 2,100 7,100 9, 200 $1,967,840

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q